Small Merchant

We deliver high value solutions that maximize your ROI and profit potential. Our experience in this space enables us to address issues of concern to you such as the economics of foot traffic, and being more successful in your business.

Advantages to the Merchant

The average surcharge is $1.75. ATM's generally conduct between 250-500 transactions per month. Returns could exceed 100% as some locations have the ability to generate 1,000 transactions or more per month. Each location is different due to economical factors, demographics, and business type. It is not possible to predict the exact number of monthly transactions of each location however the main benefit is the increased spending as a percentage of cash withdrawn is spent within the location. Retailers have to make it convenient for their customers to receive the cash their customers demand. If they don't, someone else will.

Tax Benefits

The ATM machine is tangible personal property, the cost of which can be depreciated beginning in the taxable year that the equipment is placed in service. Several depreciation schedules are available including section 179 of the IRS tax code which allows up to a $19,500 write-off in the year the equipment becomes available for use. Since National Cash Systems does not give tax advice, we suggest that our Customers check with their CPA or tax advisor to determine which method of depreciation works best for them.

Regardless of how our Customers analyze the tax savings this is in an added benefit that should not be overlooked. For example:

• If they are in 35% tax bracket, state and federal combined, this could represent a reduction by $3,500.00 ($10,000 x 0.35 = $ 3,500) or
• Look at it as an after tax reduction in the cost of equipment from $10,000 to $6,500 ($10,000 - $3,500 = $6,500) or
• Use the depreciation to partially offset tax liability on future income.

There are three solutions for a small retail merchant:

Turnkey Cash Management Solutions

Under a cash management program, the ATM is the personal property of National Cash. In this case, we would be responsible for supplying, managing, and forecasting the cash and remote monitoring of equipment to ensure smooth operation. First and second line maintenance, such as replacing paper, clearing paper or bill jams, resetting the ATM and any telecommunications, power issues, troubleshooting and maintenance repair by certified technicians is also managed by National Cash. Since National Cash is purchasing the ATM, as well as almost all of the expenses related to its operation, the profit sharing to the merchant or location owner is generally lower compared to a Merchant-Owned or Merchant Load solution. Typically, we deploy ATMs under turnkey arrangements for our national and regional merchant customers. Generally merchants need to qualify for this program, which we consider necessary to justify the upfront capital cost.

Merchant-Load Solutions

The ATM is the property of National Cash and cash replenishment is typically supplied by the merchant or store owner. The merchant generally helps in replacing paper, and troubleshooting minor issues. In this case, the merchant typically receives a middle-of-the-road profit sharing since the ATM is owned by National Cash.

Merchant-Owned Solutions

The ATM is the personal property of the merchant, or store owner and is responsible for its maintenance and most of the operating costs. Under this program, the profit sharing is the highest since the merchant is responsible for providing cash for the ATM and all maintenance. Sometimes the merchant contracts with National Cash an extended warranty program which covers miscellaneous repairs after the manufacturers warranty has expired. In some cases, a small percentage of our merchant-owned accounts, the merchants request for National Cash to supply the cash. In this case, the merchant receives a reduction in his gross income therefore receiving less than normal however it releases more available cash flow to supply other operations of their business.

The terms of our merchant contracts vary as a result of negotiations at the time of execution. In the case of turnkey arrangements, which are typically employed with our major national and regional merchants, the contract terms may vary.

Please contact National Cash for more information